Oh dear! Bitcoin has taken a faceplant, tumbling over 10 percent to a staggering $63,000-its biggest nosedive since the FTX fiasco. And if that wasn’t enough to make you clutch your pearls, XRP is down by a dramatic 19%, while a jaw-dropping $1.5 billion vanishes like my motivation on a Monday morning.
So, it’s Friday in the U.S. and Bitcoin decides it’s time for a dramatic dip below $63,000. Yes, folks, we’re witnessing the worst single-day decline since that infamous FTX fall back in November 2022. Who knew Friday could be so cruel?
The crypto world is buzzing with news of this crash-hitting lows we haven’t seen since October 2024. Right now, Bitcoin is trading at about 50 percent of its all-time high of $126,000. Mark your calendars, because February 5 might just go down as one of Bitcoin’s most cringeworthy trading days ever.
According to the ever-reliable CoinMarketCap, Bitcoin has managed to erase every single profit made since November 2021. Yes, that’s right! It’s like going to a buffet and leaving with nothing but regret. In their tweet, they also mentioned that over $1.5 billion got liquidated within just 24 hours. Talk about a bad hair day!
LATEST: 📉 Bitcoin has now erased all the gains accumulated since its previous November 2021 all-time high of $69,000, with more than $1.5 billion in total crypto liquidations over the past 24 hours.
– CoinMarketCap (@CoinMarketCap)
Source: CoinMarketCap
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Thin Liquidity Fuels Massive Liquidations
Adrian Fritz, the chief investment strategist at 21shares, has some thoughts on this debacle. Apparently, thin liquidity is to blame. Just a wee bit of sell pressure can trigger a cascade of liquidations. It’s like a sneeze in a crowded room-small sales creating big price fluctuations in a market that’s a bit wobbly. Who knew trading could be so dramatic?
Fritz also warns us that we may not have hit rock bottom yet. He’s eyeing the $58,000 – $60,000 range as a possible support zone, which aligns with the 200-day moving average. Sounds like a fun party, right?
This crash didn’t play nice with other assets either. Silver dropped 14% in a day, and gold slipped over 2% to a measly $4,850. Even the Nasdaq and the S&P 500 took a tumble, each down by 1%. It’s like watching a group of friends all trip over the same banana peel!
XRP and Altcoins Face Brutal Losses
Meanwhile, in the land of XRP, it’s not looking pretty. The coin plummeted by 19 percent, worse than most of its fellow large-cap cryptocurrencies. Almost every major token or meme coin decided to join the pity party, each dropping by over 10% in just 24 hours. Crypto stocks? Yep, they’re shedding tears too. Coinbase, Galaxy, Strategy, and BitMine all took a hit of more than 10 percent. Even the miners, like Bitfarms and CleanSpark, are feeling the burn.
As if that wasn’t enough, Bitcoin fell alongside software stocks. The iShares Expanded Tech-Software ETF lost over 3%, and let’s not forget-it’s down 24% this year. Talk about a tech meltdown!
Fritz suggests that XRP lacks a distinct trigger, which doesn’t help its case. Meanwhile, technical analysis reveals low levels of support, leaving the larger altcoin market feeling like a game of musical chairs-who will find a seat before the music stops?
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2026-02-06 16:31